Inconsistencies in FINREP validation rules F01.01 versus F04.03

Annex V part 1.21 and 2.4 of Regulation N°680/2014 (ITS) clarify that investments in subsidiaries, joint ventures and associates that are not fully or proportionally consolidated under the regulatory scope of consolidation shall be reported in “Investments in subsidiaries, joint ventures and associates” (i.e. row 260 of template F01.01) regardless of their measurement method except where they are classified as held for sale in accordance of IFRS 5. Template F04 provides a breakdown of financial assets by accounting portfolio. According to Annex V part 1.4 the ITS, investments in subsidiaries, joint ventures and associates are not included in accounting portfolios. Hence, validation rule v3390_is correct. Validation rules v3394_i and v3398 are no longer applicable. As regards template F40, any subsidiaries, joint ventures and associates whether or not fully or proportionally consolidated in the accounting scope and including those investments classified as held for sale under IFRS 5, shall be reported under this template as stated under Annex V part 2.294 of the ITS.